A Cost Associated with Project Start-Up and Development or System

question 69

Multiple Choice

A cost associated with project start-up and development or system start-up refers to a(n) :

• A)recurring cost
• B)one-time cost
• C)incremental cost
• D)infrequent cost

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Definitions:

Income Summary

An account in the accounting ledger that is used to summarize the revenues and expenses for a period, facilitating the transfer of net income or loss to retained earnings.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts, thereby preparing the company's books for the next period.

Net Income

The net income of a business once all costs, taxes, and deductions are taken from the overall revenue.

Double Rule

A method used in accounting to underline totals for certain accounts or figures, indicating a sum or conclusion.